Zodia Custody will offer secure, institutional-grade custody solutions for Marathon’s crypto holdings located outside the United States, Monday’s announcement said.

The need for secure and reliable storage of digital assets is driving crypto companies to seek out crypto custodians. These specialized institutions offer a comprehensive solution, safeguarding assets from theft, loss, or misuse.

Crypto custodians wield advanced security measures to achieve this protection. These safeguards include multi-signature wallets, requiring multiple approvals for any transaction. They also offer cold storage, which keeps the majority of assets offline and out of reach of online hackers.

Zodia Custody Joins Marathon’s Roster of Trusted Crypto Custodians

Marathon is expanding its risk management strategy by choosing Zodia Custody as its fourth custodian. This partnership strengthens Marathon’s security posture by providing additional assurances like secure cold wallet storage that’s accessible 24/7 and protection against custodian insolvency.

“As Marathon’s fourth custodian, we bring in greater diversification, and risk management – exactly what the ecosystem needs,” said Julian Sawyer, CEO of Zodia Custody.

The company already counts Anchorage Digital, Fidelity Digital, and another unnamed provider as custodians. This strategy ensures its Bitcoin treasury is spread across multiple custodians for increased security and risk management.

Zodia Custody is incubated by Standard Chartered and Northern Trust, two established financial institutions. By combining their experience with a startup’s flexibility, Zodia Custody aims to be a leader in the digital asset custody industry. It offers secure wallets for institutions to trade digital assets, as well as services to help clients earn rewards on their holdings.

Marathon CEO Warns of Financial Strain for Smaller Miners

Marathon Digital CEO Fred Thiel issued a warning last month. According to him, smaller Bitcoin miners are in for financial trouble after the recent halving event. Thiel spoke to CNBC about the uneven playing field in the mining industry. Larger miners have been able to secure funding, while smaller miners are struggling to grow because they can’t get the financing they need, he said.

“Post halving I think you’ll see the smaller miners come under financial stress, which will enable the bigger miners to consolidate the industry,” he said.

The post Marathon Digital Chooses StanChart-Backed Zodia Custody as Crypto Custodian appeared first on Cryptonews.

According to an official announcement by Hong Kong Exchanges and Clearing Limited (HKEX), the Bitcoin and Ethereum ETFs were welcomed on Tuesday, April 30, marking the introduction of the first spot virtual asset (VA) ETFs in Asia.

Expanding Virtual Asset Investment Choices

The announcement stated that Investor interest in virtual asset ETFs has significantly increased since the launch of VA Futures ETFs in late 2022.

By the first quarter of 2024, the combined average daily turnover for the three VA Futures ETFs listed in Hong Kong surged to $51.3 million from $8.9 million the previous year. These ETFs also attracted $529 million in net inflows during the same period.

The range of exchange-traded products (ETPs) on the Hong Kong Stock Exchange continued to grow, with ETFs and Leveraged and Inverse Products (L&I Products) among the fastest-expanding segments.

“The introduction of Spot VA ETFs in Hong Kong is the latest exciting addition to HKEX’s diverse and vibrant ETP ecosystem, providing investors with access to a new asset class,” said HKEX Head of Equities Product Development Brian Roberts.

“Following the success of VA Futures ETFs, the listing of Asia’s first spot VA ETFs will further enhance the product diversity and liquidity of the Hong Kong ETP market,” said Roberts.

Bitcoin and Ethereum ETF Competition in Hong Kong

China Asset Management Co. (China AMC), Harvest Global Investments, and Bosera International and HashKey Capital are the issuers of the spot Bitcoin and Ethereum ETFs. They could lead a new round of ETF competition according to a previous report.

In 2023 and the first quarter of 2024, HKEX introduced 16 new ETFs, increasing the total offerings to 179. HKEX planned to diversify its product offerings and enhancing its position in the global market.

“We look forward to continue working closely with our stakeholders with a view to launching more products to our international marketplace,” stated Roberts.

The post Hong Kong Launches Asia’s First Spot Bitcoin and Ethereum ETFs appeared first on Cryptonews.

This latest funding will be used by GFAL to expand its core team and speed up its production plans. The investment round builds on the $4.4 million in capital from token pre-sales that the company said it obtained in 2023 through GFAL’s token offering.

The team behind GFAL team includes team members who held positions at King Entertainment, Activision Blizzard, Electronic Arts, Netflix and Digital Chocolate. 

GFAL’s token, $GFAL, is currently sitting at a fully diluted valuation (FDV) of $254,717,017 after one of the most impressive token launches of 2023, said the firm.

Elemental Raiders Showing Growth 

Funding will go towards the launch of GFAL’s mobile game, “Elemental Raiders ” which soft-launched in March 2023. Elemental Raiders has a growing community of players and is seeing a steady improvement in the performance and the metrics of the game, said the gaming firm.

 “I’ve been very impressed with the GFAL team’s design-centred approach to Web3 gaming, and I am delighted to join my friends Trip Hawkins and Ilkka Paananen [CEO of Supercell Ltd] in this financing round to support Elemental Raiders and other titles,” said VC Mitch Lasky in a press release. 

Web3 Gaming Growth 2024

In 2024, web3 gaming is growing rapidly with the space attracting more VC investment. In 2023, it is estimated that the blockchain gaming-related rounds reached $1.7 billion which is a significant part of that has flowed to the 270 blockchain games in development on Immutable.

Recently King River Capital, blockchain gaming firm Immutable and Polygon Labs announced they had teamed up to launch a $100 million gaming fund.

Web3 gaming platform Elixir Games raised $14 million in a seed funding round from Square Enix, the Solana Foundation, Shima Capital, and others. The funding will be used by Elixir Games to launch its native token “$ELIX” and its “Launchpad & Incubation Program” which go live later this year.

Illuvium announced it had raised $12 million in a series A funding round with contributions from investors such as Australian venture capital firm King River Capital, Arrington Capital and Animoca Ventures.

The post Web3 Gaming Startup GFAL Raises $3.2M in Funding Round Led by Supercell and Mitch Lasky appeared first on Cryptonews.

The cautionary words came from Kim Dae-kyung, a tax accountant at the Hana Bank Asset Management group’s Asset Management Consulting Center. Kim published the warning in an article for the media outlet Money S.

South Koreans Warned: Declare or Face Consequences

Crypto trading profits are not subject to any form of taxation in South Korea, provided this trading is done on domestic platforms.

As of next year, that is slated to change. A new law will require traders to file capital gains declarations and pay tax on profits over a threshold of around $2,100.

However, Kim explained that cryptoassets held on platforms outside South Korea are already considered “overseas assets.”

Failure to declare these assets on Financial Year 2023-2024 tax declarations could be considered tax law violations, Kim wrote.

The tax expert wrote that “overseas financial account” declarations must be completed by the end of June this year.

These such declarations were mandatory per the terms of the Income Tax Act.

The act stipulates that “if the total balance of overseas financial institution accounts exceeds [$363,000],” South Korean residents “must fulfill the obligation to report overseas financial accounts by June 30.”

Failure to Declare Crypto Could Result in Fines or Prosecution, Expert Warns

The expert added that until recently, tax bodies were relatively powerless to identify overseas assets. They relied entirely on voluntary declarations for their information, Kim wrote.

However, Kim noted that as of 2014, South Korean tax bodies have been exchanging data with their counterparts in the USA and other OECD nations.

As such, Kim wrote that the National Tax Service can now access all of “an individual’s overseas account information.”

Tightening global regulation of crypto exchanges has extended this to token wallets. Data sharing between international exchanges is now mandatory in many areas.

Kim noted that fines for “non-reporting” are“very large,” at “approximately 10-20% of the [wallet] balance.”

If crypto traders fail to report details of wallets containing over $3.6 million worth of assets, they could face criminal prosecution.

Lawmakers added crypto-specific clauses to the tax code in December 2020. These specifically cover “accounts opened overseas to trade cryptoassets.”

https://t.co/0ODFiUuW3F delays Korean market entry indefinitelyhttps://t.co/0wH9g3SCmZ

— The Korea Times (@koreatimescokr) April 24, 2024

President Yoon Suk-yeol has previously pledged to raise the tax threshold for domestic crypto trading profits to around $41,000.

The post South Koreans Warned to Declare Overseas Crypto Exchange Holdings appeared first on Cryptonews.

Per the media outlets Finam and RBC, Deputy Chairman of the State Duma Committee on Information Policy Anton Gorelkin confirmed that the State Duma will debate a new mining law in the current session.

Russian Law to Change Nation’s Crypto Mining Sector?

It appears that the mining bill will be bundled with proposed crypto regulation that would effectively ban crypto exchanges from operating in Russia.

Certain exceptions will be made for companies operating in a Central Bank-supervised sandbox.

However, the bank appears to have made this concession exclusively for international trade firms that use crypto in place of USD in international trade deals.

Industrial miners, it appears, may also be allowed access to these Moscow-controlled exchanges under the new proposals.

But they will only be allowed to use these platforms to sell their tokens.

Gorelkin explained that the new bill proposes that “only Russian firms and business operators who have obtained permission” will be allowed to continue mining.

Lawmakers have previously said they hope the bill will be adopted in the coming weeks, and that it will come into force on September 1.

Permit System to Roll Out

Gorelkin added that “individuals who do not exceed energy consumption limits established by the government” would be free to mine coins “without applying for permits.”

This would be a step back from previous efforts to ban all forms of non-industrial crypto mining.

However, it remains to be seen what the proposed energy consumption caps would be. Russian energy providers have been cracking down on illegal mining operations in recent months, an indication that their tolerance threshold for home-based miners may already be low.

Industrial miners will also be obliged to provide reports on their activities to Rosfinmonitoring, the nation’s anti-money laundering agency.

Overseas Crypto Exchanges to Play a Role?

Interestingly, perhaps, Gorelkin also made remarks about industrial miners being allowed to sell coins “without the use of Russian information infrastructure.”

This could be a reference to overseas crypto exchanges. Previous efforts to regulate crypto mining in Russia centered around the idea of forcing domestic firms to sell their coins on foreign trading platforms.

The Central Bank thinks that this policy would help keep crypto “out of the domestic economy.”

The bank has made this a priority demand, as it attempts to fast-track its digital ruble project.

Exclusive: As China's big banks pull back from financing Russia-related transactions, some Chinese companies are turning to small banks on the border and underground financing channels such as money brokers and banned cryptocurrency https://t.co/GLmIBNPaHR

— Reuters (@Reuters) April 29, 2024

The bill also appears to hand a certain degree of power to energy providers and local government bodies.

In the past, officials in mining hotspots like Irkutsk have complained that miners are placing excessive pressure on their grids.

Gorelkin explained that the proposed law “includes the possibility of giving the Russian government the right to ban mining activities in certain regions.”

However, he conceded, there is still much to “debate” about the possible “terms and scope” of such “bans.”

Cryptominers rack up big B5m unpaid electricity bill https://t.co/fbR8ywG3Uc

— Malcolm Carter (@MalcolmThailand) April 29, 2024

Experts Unsure About New Bill

Russian law experts expressed mixed opinions about the news. RBC quoted Yuri Brisov, a partner at the legal consultancy Digital and Analogue Partners, as noting that lawmakers have tried – and failed – to regulate mining before.

The latest effort appears to be the result of intensive lobbying from the industrial mining sector.

And despite talk of adopting the bill in time for a September rollout, Brisov said that lawmakers would need to revise the draft law before a vote. He explained:

“This bill is already the eighth attempt to create a mining law. It is very crude, even the definition of mining is hastily set out. The writing is terrible. There is little chance that it will be accepted in its current form.”

The post New Russian Law Will Legalize Industrial Crypto Miners, Limit Private Mining appeared first on Cryptonews.

The investigation examined over 25 exploits across various blockchains and traced illicitly gained funds through mixers, peer-to-peer marketplaces, and centralized exchanges to show how the funds were removed from the crypto ecosystem.

North Korean Lazarus Group Implicated in Laundering Over $200 Million in Stolen Cryptocurrency

1/ How Lazarus Group laundered $200M from 25+ crypto hacks to fiat from 2020 – 2023https://t.co/s8zNFwlamb

— ZachXBT (@zachxbt) April 29, 2024

These illicit funds were obtained through over 25 crypto hacks allegedly orchestrated by the Lazarus Group, which has gained infamy since its emergence in 2009. The group reportedly stole over $3 billion in crypto assets over the six years leading up to 2023.

“Thousands of people in the space have been impacted directly and indirectly by Lazarus Group attacks, and it seems that number will only continue to increase,” ZachXBT wrote on X.

The North Korean hackers allegedly laundered the stolen digital assets using a combination of crypto mixing services and peer-to-peer (P2P) marketplaces. 

The crypto sleuth pointed out that at least $44 million of stolen cryptocurrency has been laundered through the Paxul and Noones P2P marketplaces, utilizing usernames such as “EasyGoatfish351” and “FairJunco470.” These usernames exhibited deposit and trading patterns consistent with the movement of stolen funds.

Further analysis indicates that the hacked funds were predominantly converted into the USDT stablecoin before being exchanged for fiat currencies and subsequently withdrawn. The Lazarus Group has historically relied on over-the-counter traders in China to convert cryptocurrency into fiat currencies.

In November 2023, Tether blacklisted over $374,000 worth of stolen funds associated with the Lazarus Group. Additionally, three out of four stablecoin issuers have reportedly blacklisted an additional $3.4 million sitting in a cluster of addresses linked to Lazarus, as per ZachXBT’s findings.

North Korea-Linked Hacks Account for $2.4 Billion in Cryptocurrency Losses Since 2020

According to data from the United Nations Security Council (UNSC) and DeFiLlama, more than 70% of the cryptocurrency lost to North Korea-linked hacks since 2020 was attributed to exploits involving compromised private keys.

The combined findings indicate that North Korea was implicated in approximately $2.4 billion worth of crypto heists since 2020, with $1.69 billion attributed to thefts resulting from compromised private keys.

Exposing Lazarus: The Group That Stole $200 Million in Crypto

Lazarus Group Crypto Heists Uncovered

Who Are They?
#Lazarus Group, linked to North Korea, known since 2009 for major cyberattacks (e.g., Sony Pictures).
Shifted focus to crypto-sector from 2020-2023.
… pic.twitter.com/fA5LCST6Yz

— Crypto Patel (@CryptoPatel) April 29, 2024

In a report published last month, the UNSC documented investigations into 58 crypto heists with suspected North Korean involvement dating back to 2017. These hacks amounted to approximately $3 billion, with $700 million stolen during 2023 alone.

Blockchain forensics firm Chainalysis reported a higher figure in January, however, estimating that North Korea-linked hacks accounted for $1 billion of the $1.7 billion total stolen in 2020. Interestingly, despite increased activity by North Korean hackers in 2023, they absconded $700 million less than the preceding year.

Approximately $1.7 billion worth of funds were stolen from the cryptocurrency space across 231 hacks. DeFiLlama and UNSC data analysis also revealed a decline in the overall amount of crypto hacked from protocols, dropping to $1.53 billion in 2023 from $3.28 billion in 2022. This trend also contrasts with 2021’s figure of $2.34 billion.

The decrease in losses could signify project security improvements or be influenced by market conditions. Experts caution that hacking volume may surge again with favorable market conditions and the continued growth of the decentralized finance (DeFi) sector, however.

The post North Korean Lazarus Group Allegedly Laundered Over $200 Million in Stolen Crypto from 2020 to 2023 appeared first on Cryptonews.

USDC Stablecoin Recorded $456 billion in transaction volume

The adjusted stablecoin metric data reveals that Circle’s USDC stablecoin has been gaining market share, recording a transaction volume of $456 billion last week compared to Tether’s USDT at $89 billion.

USDC stablecoin also accounted for a 50% share of total transactions since January.

The data report did not specify the reasons behind the surge in USDC transaction volume, however.

Despite the increase in USDC transaction volume, Tether is still the dominant force in the stablecoin market. The USDT stablecoin accounts for over 68% of the market share with a market cap of over $100 billion.

Crypto analyst Noelle Acheson offered Bloomberg an insight into USDC’s meteoric rise in transaction volume, noting that USDT is primarily held outside the US as a dollar-based store of value. In contrast, USDC stablecoin is predominantly used within the US as a transaction currency.

USDC Stablecoin Continues Growth Rebound After 2023 US Banking Setback

The increase in USDC volumes follows a series of back-to-back stablecoin adoption.

Stripe, a major player in digital payments, reintroduced cryptocurrency payments recently, with a specific focus on the USDC stablecoin. The USDC payment integration is set to launch in the summer of 2024.

Stripe’s announcement, coupled with PayPal’s launch of its stablecoin PYUSD and Shopify’s acceptance of stablecoin payments, indicates a growing adoption of USDC and other stablecoin assets in mainstream transactions.

Meanwhile, Binance converted its $1 billion Secure Asset Fund for Users (SAFU) to USDC stablecoin on April 18 in a bid to bolster the fund’s reliability and ensure SAFU balance value remains the same despite market volatility.

Meanwhile, the US Congress is considering stablecoin legislation, with the potential for stablecoin adoption to continue to increase as the regulatory environment solidifies.

The post Circle’s USDC Stablecoin Surpasses Tether’s USDT in Transaction Volume appeared first on Cryptonews.

Through its new venture division, Tether Evo, the stablecoin giant, has become the majority stakeholder in Blackrock Neurotech, signaling a significant step towards advancing medical solutions for individuals affected by paralysis, neurological disorders, and lost function.

Tether’s First Announced Investment After Division

Today Tether takes the majority stake in @BlackrockNeuro_ and unveils the ultimate pillar of its long term vision and strategy: Tether Evo

First of all, this investment (same as energy, mining, …) is done outside of stablecoin reserves, with our own company profits (last… https://t.co/aeDWK97mq1

— Paolo Ardoino (@paoloardoino) April 29, 2024

Blackrock Neurotech, founded in 2008, has been at the forefront of BCI innovation, developing cutting-edge tools that enable patients to control devices using their thoughts. 

The company’s technology has empowered individuals to perform tasks previously thought impossible, such as operating robotic arms, manoeuvring wheelchairs, and even communicating with others through brain signals.

“Tether investments are made outside of the stablecoin reserves using company profits,” Tether CEO Paolo Ardoino said. 

Tether’s investment aims to accelerate the commercialization and rollout of Blackrock Neurotech’s medical solutions, which have already demonstrated remarkable success in improving the lives of over 40 individuals. Additionally, the funding will support ongoing research and development efforts, ensuring that Blackrock Neurotech remains at the forefront of BCI technology innovation.

Paolo Ardoino, CEO of Tether, expressed his enthusiasm for the partnership, emphasizing Tether’s commitment to nurturing emerging technologies with transformative capabilities. 

Ardoino said,

“Blackrock Neurotech is just the beginning of our journey through Tether Evo to venture into projects that redefine the boundaries of what’s possible at the intersection of technological innovation and human potential.” 

Ardoino also highlighted the potential of Blackrock Neurotech’s BCI technology to revolutionize communication, rehabilitation, and cognitive enhancement.

“Tether has long believed in nurturing emerging technologies that have transformative capabilities, and the Brain-Computer-Interfaces of Blackrock Neurotech have the potential to open new realms of communication, rehabilitation, and cognitive enhancement.”

Dr. Florian Solzbacher, co-founder of Blackrock Neurotech, expressed his deep gratitude for Tether’s support. He emphasized the shared long-term vision of both companies to advance healthcare and improve the lives of millions worldwide. 

“My life’s dream has been to help and restore function in people who lost it and to advance technologies that revolutionize healthcare and the world around us,” Solzbacher, co-founder of Blackrock Neurotech, said.

Solzbacher added,

“This ambitious, long-term endeavour requires dedicated and visionary partners. With its commitment to seeking out and nurturing technology that will help many people and push mankind forward, we couldn’t dream of a better partner than Tether to bring our shared vision to life.”

Tether Leading at The Forefront of Innovation and Adoption

As Tether expands its focus beyond stablecoin offerings with the launch of divisions like Tether Evo, the company is pushing the boundaries of what’s possible. 

“Tether Evo stands at the intersection of innovation and human potential, dedicated to propelling humanity into a future where technology and human capabilities merge in unprecedented ways,” Tether said.

Notably, Tether has spent little time establishing a significant presence on its recent launch on TON. With a swift issuance of $60 million worth of USDT, TON now stands as the 11th blockchain to host Tether, marking a pivotal moment in expanding its accessibility and utility for users worldwide.

The collaboration between Tether and TON was unveiled at the Token2049 conference in Dubai, where they introduced USDT and launched Tether Gold (XAUT) on the blockchain. This gold-pegged stablecoin offers users enhanced diversification options within the TON ecosystem.

Tether CEO Paolo Ardoino hailed the partnership as a “great start,” initially issuing $35 million, which swiftly escalated to $60 million within just two days, as confirmed by the Tether Transparency report.

Tether reported a record net profit of $2.9 billion in its latest Q4 2023 attestation report, published earlier this year. Tether also recently launched on the Celo Blockchain, taking advantage of this broad base to promote the adoption of Celo solutions and see more users adopt USDT. With USDT minting on Celo now available, users can use the stablecoin transparently and in a cheap environment.

The post Tether Invests $200 Million in Blackrock Neurotech’s Neurological Disorder Solutions appeared first on Cryptonews.

“Unfortunately, Google has temporarily removed our app from the Play Store,” the crypto company posted to its official X page around 7:00 a.m. EST. “Google notified us of this potential action, and we submitted an appeal weeks ago. However, while awaiting a response from Google to our appeal, Google removed our app anyway.”

Trust Wallet Back Up And Running On Google Play Store

The post warned that Android users looking to use Trust Wallet would have to download an Android Package Kit (APK) from the crypto wallet’s website in light of Google’s removal.

Ok, well that was sorted quickly..! The Android version of the app is back on the Google Play Store

Let's continue #BUIDLing, checking charts & touching grass https://t.co/YbgfY2KcBP pic.twitter.com/9Z4KXkhqNV

— Trust Wallet (@TrustWallet) April 29, 2024

“​​If you currently have the Android version of the Trust Wallet app, it will continue to work normally, and rest assured, your funds remain safe,” the company’s statement continued. 

The company further noted that those who had uninstalled the app could not download it again until it became relisted by Google. 

While the App Store iOS and Google Chrome Browser Extension versions of Trust Wallet were not affected, the company was concerned scammers could create fraudulent applications impersonating the crypto wallet.

By 7:30 a.m. EST, however, Trust Wallet announced it was back up and running on the Google Play Store.

“Ok, well that was sorted quickly!” the company wrote. “The Android version of the app is back on the Google Play Store. Let’s continue #BUIDLing, checking charts & touching grass.”

As of Monday morning, the crypto wallet’s native coin, Trust Wallet Token (TWT), was down by 5.2%.

Self-Custody Wallets Face Crypto Regulatory Crackdown

The removal of Trust Wallet from the Google Play Store sparked concerns among users amidst increased regulatory pressure in the U.S. to crack down on self-custody crypto wallets.

On Saturday, Wasabi Wallets’ developer zkSNACKs announced a total ban on U.S.-based users of the self-custody wallet.

“In light of recent announcements by U.S. authorities, zkSNACKs is now strictly prohibiting U.S. users from using its services,” the company wrote.

The zkSNACKs coordinator is now blocking U.S. residents and citizens from using its coinjoin service.

— Wasabi Wallet (@wasabiwallet) April 27, 2024

While no direct announcement from U.S. authorities was cited, the decision to prevent U.S. users from accessing Wasabi Wallet services comes just days after the Department of Justice (DOJ) unveiled money laundering charges against Samourai Wallet founders Keonne Rodriguez and William Lonergan Hill.

“The FBI is committed to exposing covert financial schemes and ensuring no one can hide behind a screen to perpetuate financial wrongdoing,” FBI Assistant Director in Charge James Smith said.

It’s currently unclear whether self-custody crypto wallets, such as Trust Wallet, may be designated money transmitters, potentially opening the floodgates for a swath of increased enforcement actions.

The post Trust Wallet Back On Google Play Store After Temporary Removal appeared first on Cryptonews.

This move comes amidst a surge in suspicious transaction reports from crypto companies. Over 16,000 reports were received last year, representing a 49% increase from the previous year.

South Korea Considers Formalizing Crypto Crime Investigation Unit

According to a local report, South Korea is considering promoting its temporary crypto crime investigative unit, the Virtual Asset Joint Investigation Team, into a permanent department. 

In response to an ongoing trial of South Korea’s altcoin issuer arrested on fraud charges, the Ministry of Justice and the prosecution are advocating for formally establishing the Virtual Asset Joint Investigation Team to enhance investigative capabilities. Notably, the Justice Ministry and the Ministry of the Interior and Safety are scheduled to commence discussions in early May regarding the elevation of the unit to an official department.

Currently operating under the Seoul Southern District Prosecutor’s Office as a temporary body, the unit faces the risk of dissolution. According to the report, elevating its status is anticipated to enhance efficiency. This will be done through the appointment of new prosecutors and improved budget allocation.

The Virtual Asset Joint Investigation Team, inaugurated on July 26, 2023, is tasked with investigating coin-related crimes. It comprises around 30 investigative experts from seven different organizations, including the prosecution and financial authorities. This team collaborates with various crucial entities in virtual asset crime investigations.

Despite the commendable progress achieved by the unit, concerns about its temporary status could lead to its potential abolishment. Past cases, like the abolition of the Southern District Prosecutors’ Office’s Securities Crime Joint Investigation Team in January 2020, highlight the need for a formalized investigative organization to ensure balanced communication and cooperation with relevant entities.

South Korea Grapples with Surge in Crypto-Related Crimes

South Korea witnessed a notable increase in crypto-related criminal activities, as indicated by South Korea’s Financial Intelligence Unit.

According to a February report by South Korea’s Financial Intelligence Unit, local crypto companies reported 16,076 suspicious transactions in 2023, a 49% increase from 2022. Over the five years from 2017 to 2022, the financial damage inflicted by virtual asset-related crimes exceeded 5.3 trillion won.

South Korea is set to introduce stricter regulations for token listing on exchanges, including the blocking of tokens that have been hacked.

Click here to learn more https://t.co/HySBMSNX4C

— Cryptonews.com (@cryptonews) April 5, 2024

To safeguard investors, South Korea is set to implement its first comprehensive crypto regulation on July 19. The new regulation introduces stricter criminal penalties for market manipulation in the crypto sector. This regulation includes the possibility of life sentences in certain cases or significant fines for violators involved in such crimes.

Mr. Han, the CEO of a virtual asset issuer, has been accused of collaborating with a professional market manipulation business named ‘John Berkim’ to allegedly defraud investors of 21.6 billion won. He is now facing trial after being handed over on the 5th. In December 2020, Mr. Han launched and listed ‘Grape’, a coin without any utility. The coin allegedly caused significant losses to numerous investors through tactics such as market manipulation.

The Grape coin fraud case is just one example of the increasing number of virtual asset crimes. With virtual assets gaining popularity as a new investment avenue, related crimes and the extent of damage are escalating rapidly. 

The post South Korea to Make Temporary Crypto Investigative Unit Permanent appeared first on Cryptonews.

Reports surfaced today, April 29, revealing a sophisticated phishing operation orchestrated by the group, posing as a senior executive from Fenbushi Capital, a prominent Chinese blockchain asset management firm. 

SlowMist, a cybersecurity firm, illuminated this alarming development by exposing the group’s elaborate scheme to lure unsuspecting users into crypto phishing scams.

Lazarus Strategy Exposed

Last week, SlowMist revealed that Lazarus Group has been targeting LinkedIn users within the crypto industry as part of a crypto hacking scheme. The hackers create fake profiles on LinkedIn and contact HR personnel and hiring managers in blockchain-related organizations.

#Lazarus #APT The Lazarus group appears to be currently reaching out to targets via LinkedIn and steal employee privileges or assets through malware. #Lazarus #APT Lazarus 组织目前正通过 LinkedIn 联系加密货币行业的目标，并通过恶意软件窃取员工权限或资产。

— 23pds (@im23pds) April 24, 2024

They then send links containing malware disguised as code to showcase their coding abilities, aiming to exploit the victim’s data. SlowMist identified a periodic function named “stealEverything.”  This function is designed to extract as much data as possible and upload it to a server controlled by the attackers.

According to today’s update, SlowMist’s Chief Information Security Officer said the Lazarus Group’s latest tactic involves creating fake LinkedIn profiles. One profile masquerades as “Nevil Bolson,” purportedly a founding partner at Fenbushi Capital. 

The profile picture used by the impostor was sourced from Remington Ong, a legitimate partner at Fenbushi Capital. This further adds a layer of authenticity to the deception.

They use fake profiles to initiate private conversations with potential targets on LinkedIn, often under the pretext of discussing investment opportunities or arranging meetings. 

Once trust is established, the hackers introduce malicious links disguised as meeting invitations or event pages, which, when clicked, trigger phishing attacks aimed at compromising sensitive information or crypto assets.

SlowMist’s investigation into the Lazarus Group’s activities revealed a pattern of targeting prominent DeFi projects, leveraging the guise of investment company members to gain the trust of their victims. 

By meticulously comparing IP addresses and analyzing the attack strategy, SlowMist conclusively identified “Nevil Bolson” as part of Lazarus, reaffirming the group’s nefarious intentions.

Watch out for the #Lazarus attack on the fake Fenbushi Capital on linkedin! @fenbushi @SlowMist_Team @boshen1011 @VitalikButerin pic.twitter.com/cAjAcPqkNj

— 23pds (@im23pds) April 29, 2024

Furthermore, the scale of crypto-related cybercrime perpetrated by groups like Lazarus is staggering. According to blockchain analytics firm Chainalysis, $1.7 billion worth of funds was stolen from the crypto space across 231 hacks in 2023 alone.

Lazarus Group Keeps Threatening Crypto Security

While Lazarus Group’s latest tactics on LinkedIn have garnered attention, their hacking spree extends beyond social media platforms. Recent reports indicate that the group has been involved in numerous exploitation attacks in the past few days. Early this year, the group orchestrated a significant move, transferring $12 million in Ether using Tornado Cash, a popular coin mixer. 

Furthermore, Lazarus Group’s activities have had tangible effects on specific cryptocurrencies, for example, RAIL. Railgun (RAIL), the native token of another coin mixer, has experienced a decline in price following Lazarus’ illicit activities on the platform. 

In the wake of allegations linking Railgun, a privacy protocol, to the sanctioned North Korean Lazarus Group’s illicit activities, Railgun has vehemently denied any association with the hacker collective.

The controversy stemmed from an analysis published by Elliptic, which suggested that the Lazarus Group had used Railgun to launder over $60 million worth of stolen Ethereum in June 2022. According to the report, the group shifted its laundering operations to Railgun following US sanctions imposed on Tornado Cash.

Elliptic’s research further indicated that a significant portion of the funds passing through Railgun, estimated at around 70%, were linked to the Harmony hack. This influx of Ethereum compromised Railgun’s effectiveness as a privacy protocol.

Reports suggest that 40% of North Korea’s weapons of mass destruction are funded through illicit cyber means, with Lazarus Group having stolen over $3 billion worth of digital assets globally to date.

The U.S. and its allies view North Korea’s state-sponsored malware initiatives as a threat to national security. Last year, the U.S. sanctioned the crypto mixer Sinbad, known as a “key money-laundering tool,” for the regime’s digital asset exploitation efforts.

The post Lazarus Group Targets LinkedIn Users, Impersonates Fenbushi Capital Executive: SlowMist appeared first on Cryptonews.

__________

Why is crypto down today?

The global cryptocurrency market capitalization today stands at $2.43 trillion. It is a 3.2% decrease over the past 24 hours, according to CoinGecko.

Among the top 100 coins per market cap, only five have seen their prices increase.

Ribbon Finance (RBN) is leading this list. It’s up 23% to $1.14.

WhiteBIT Coin (WBT), Lido DAO (LDO), Kaspa (KAS), and Bitget Token (BGB) are also on this green list.

On the other hand, CORE’s price fell the most: 10.5% to $2.

PEPE and FLOKI are down nearly 10%.

As for the top 10 coins per market cap, they are all red today.

The highest drop here is Solana (SOL)’s drop of 6.2% to $134.84.

Toncoin (TON)’s fall of nearly 6% to $5.24 is next, followed by Dogecoin (DOGE)’s 5.8% decrease to $0.1414.

Bitcoin (BTC) declined by 2.6%, currently trading at $62,255, while Ethereum (ETH) went down 4.1%, changing hands at $3,182.

Meanwhile, Ethereum gas fees saw a significant drop to $1.12 – their lowest levels in six months. 

Analysts from crypto analytics platform Santiment suggest that this decline could be a signal for an upcoming altcoin rally.

Also, Australia’s main market operator, ASX, is on track to greenlight the country’s first spot-based Bitcoin ETFs by the end of 2024. 

A spokesperson told Cryptonews that the operator is discussing crypto-based ETFs with “a number of” interested issuers.

Anchorage Digital Launching Crypto Settlement Network

In crypto news today, the US-based crypto platform Anchorage Digital is launching its own settlement network for institutional clients.

According to the announcement, Anchorage Digital has introduced Atlas – Anchorage Digital Trusted Liquidity and Settlement. 

It is described as the only settlement network offered by a federally chartered bank.

Atlas is purpose-built for all types of institutional counterparties, it said. This includes buy- and sell-side, and exchanges. 

It facilitates “a wide range of settlements,” including OTC settlement, OTC margin/collateral management, and off-exchange settlement. 

“Since its early access launch earlier this year, Atlas is already settling hundreds of millions of dollars in digital assets,” the announcement said.

EXCLUSIVE: Atlas, @Anchorage Digital’s revolutionary global settlement network, is here for buy- and sell-side institutions.

Watch the interview with our CEO & Co-founder @nathanmccauley and @CNBC Crypto World’s @TaliaKaplan on the launch : pic.twitter.com/IjQaWnCwKb

— Anchorage Digital (@Anchorage) April 25, 2024

Meanwhile, Atlas offers funds 24/7, while customers are able to settle in crypto and USD in a few minutes.

The bank is mandated by statutes set by the Office of the Comptroller of the Currency to keep assets segregated with verifiable wallet addresses.

It also must ensure that funds settle to bankruptcy-remote custody.

The settlement is fully on-chain, not reliant on settlement providers’ books, and assets are never commingled.

Additionally, the customers can access global counterparties, including clients of both Anchorage Digital Bank and Anchorage Digital Singapore. 

Also, “some of the biggest counterparties in crypto” work with Anchorage Digital Bank N.A. to meet their fiduciary obligations, it added.

Notably, said the announcement, Anchorage Digital is the only custodian to provide on-demand settlement directly between participants without escrow, collateral, or the use of omnibus accounts. 

260,000 Users and 250M NFT Mints Expected from SKALE-Virtualness Partnerships

SKALE Network, a gas-less EVM-compatible blockchain designed for Ethereum scaling, and Virtualness, a mobile-first platform powered by generative AI and blockchain, announced a strategic partnership “aimed at redefining digital engagement and empowering global sports fans, enterprises and creators alike.”

Virtualness serves 260,000 users and recently signed to work with Asia’s largest football league Liga1. 

Per the announcement, sports fans will have access to exclusive NFT moments, player cards, rewards, loyalty programs, real-world experiences, and gamification on the Virtualness platform, powered by SKALE. 

Notably, SKALE expects 250 million NFTs to be minted on Virtualness in 2024.

Virtualness and SKALE announce a strategic partnership

Today marks an exciting milestone for @Virtualnessio as we join forces with @SkaleNetwork, a leading gas-less EVM-compatible blockchain solution designed for secure Ethereum scaling. This partnership aims to redefine digital…

— Virtualness (@Virtualnessio) April 26, 2024

Thanks to the partnership, Virtualness’ users will leverage SKALE’s high-throughput, zero-gas-fee transactions, and instant finality capabilities, the teams said. 

With SKALE, sports fans, enterprises, organizations, and all Virtualness users “can now mint for free, further democratizing the access to digital asset ownership,” they added.

The Virtualness platform offers a user-friendly interface for creating, minting, and showcasing digital goods. No knowledge of crypto or blockchain is needed.

It also allows sports, enterprises, and creators to interact with their communities directly. 

Virtualness will “soon” offer more on-chain assets, including NFT player cards, prizes via SKALE tokens, and the transparent storage and sharing of game data, such as leadership board scores and prize information.

Fake Bomber Sentenced to Three Years of Probation

In other crypto news today, William Giordani (55), accused of participating in a crypto-related bomb threats plot, was sentenced to three years of probation.

According to The Independent, last April, a caller with a disguised voice told Harvard University’s police department that bombs had been placed on campus.

The caller demanded an unspecified amount in Bitcoin in exchange for not remotely detonating the bombs. 

Harvard’s Science Center Plaza and surrounding academic buildings were evacuated.

Only one false device was found, and there were no injuries.

Giordani pleaded guilty to one count of concealing a federal felony – knowing about a felony and not reporting it.

The charge was dropped. While Giordani originally faced a sentence of up to three years and a fine of up to $250,000, the prosecutors recommended a sentence of up to three years’ probation.

Prosecutors said that one reason they accepted his guilty plea was that they believed he had been pulled into the plot after he responded to a Craigslist ad. 

His reply to the ad was driven in part by a drug habit, they said, adding that Giordani “has made efforts to remain in a recovery program.”

__________

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The post What’s Happening In Crypto Today? Daily Crypto News Digest appeared first on Cryptonews.

JunHe’s Partner Chen Xin recently co-authored and published The Anti-Money Laundering Challenges and Opportunities of the Digital Yuan, an article that analyzes China’s central bank digital currency (CBDC)’s AML compliance.

JunHe’s Report on Digital Yuan AML Compliance

As a digitalized legal tender directly issued by the People’s Bank of China (PBOC), the digital yuan is poised to innovate payment systems but also faces unique vulnerabilities that could be exploited for illicit activities.

A major concern was the potential for the digital yuan to be used anonymously. While providing user privacy, the digital currency’s features could potentially make it easier for bad actors to mask illegal transactions.

“An anonymous wallet allows users to conduct transactions without revealing their identity information, designed to provide a higher degree of privacy protection,” the article reads.

The report also highlighted the speed and cross-border nature of transactions with the digital yuan, which could complicate traditional AML monitoring practices. Transactions with e-CNY are completed almost instantaneously, which reduces the window for regulatory intervention.

In addition, the integration of the digital yuan into the global financial system could raise concerns about its compatibility with international AML standards.

As the currency becomes more widely used internationally, ensuring that transactions comply with a diverse range of regulatory environments becomes increasingly challenging.

Suggestions, Solutions, and Opportunities

The firm suggested integrating advanced technologies such as artificial intelligence and blockchain to improve real-time monitoring of transactions. This technological upgrade would enhance the ability to promptly identify and address suspicious activities.

Additionally, the report called for refining the identity verification processes, especially concerning anonymous wallets.

By implementing strict transaction limits and ensuring rigorous due diligence, the balance between maintaining user privacy and ensuring transaction transparency can be managed.

On the international front, the report emphasized the importance of aligning e-CNY with global AML standards.

“There is reason to believe that the implementation and improvement of the digital yuan’s AML guidance policies will provide a healthy, transparent, and secure financial environment for financial institutions, businesses, and the public,” the article reads.

“As the digital yuan continues to be promoted and used, we look forward to seeing a more efficient, convenient, and secure digital payment future,” the firm concluded.

The post Top Chinese Law Firm Analyzes Digital Yuan AML Challenges appeared first on Cryptonews.

According to a postmortem Shadid published on social media, the attackers exploited vulnerabilities to spoof GPU availability and receive rewards of the decentralized computing network based on Solana.

Io.net CEO Reflects on Lessons Learned from Recent Attack

Following the discovery of the April 27 Sybil attack, Io.net’s team conducted a thorough analysis to understand how the attackers were able to exploit the network.

The incident began when an unexpected surge in GPU connections was noticed, with approximately 1.8 million fake GPUs trying to connect to the network.

“Over the last 120 hours, we worked to expel sybil attackers from the network, roll out multiple security patches, and put in place a new security model to prevent future incidents,” said Shadid. “During this time, I worked very closely with the team.”

Postmortem on 4/27 Incident Report$IO Nation,

Over the last 120 hours, we worked to expel sybil attackers from the network, roll out multiple security patches, and put in place a new security model to prevent future incidents. The network infrastructure is now fully…

— SHADID | $IO (@shadid_io) April 28, 2024

The attackers had exploited a vulnerability that allowed them to mimic the signals sent by genuine GPUs, thus fooling the network into recognizing them as legitimate.

“Like many startups, we move fast, and sometimes we break things,” stated Shadid. “In this case, something broke, and someone or some group sought to exploit that.”

Shadid noted that following the launch of their fundraising and incentives program in March, Io.net saw an exponential increase in GPU connections. Initially, these appeared normal with stable clustering and valid heartbeats.

However, the rapid growth overwhelmed their infrastructure, leaving the team unprepared and unable to detect underlying vulnerabilities.

“This attack was a painful lesson for me,” said the CEO. “I apologize to the community for allowing it to happen. Much of the criticism we’ve received is reasonable and our team takes it in stride.”

Implementing Enhanced Security and Transparency Measures

The company is actively implementing a series of measures to strengthen network security and restore confidence.

Firstly, Io.net is enhancing the clarity and transparency of its user interface. The network now displays three key metrics on its dashboard: total GPUs/CPUs connected, verified GPUs/CPUs that have passed the Proof of Work process, etc.

The technology team is also committed to transparency and will soon publish a list of known issues to keep the public informed, including ongoing bugs and necessary updates.

Lastly, the business team is coordinating a network reboot, which prioritizes strengthening supplier relationships and quickly restoring the network’s operational capacity.

The post Io.net CEO Details Recent Sybil Attack and New Security Measures appeared first on Cryptonews.

Newspapers such as Seoul Kyungjae noted that it has been almost a year since South Korean President Yoon Suk-yeol called for an “all-out war” on crypto-powered drug trafficking.

Yoon’s comments came after police reported dozens of cases of narcotics trading by teenagers and people in their 20s.

However, it now appears that some Telegram channel operators know that police are monitoring their channels – and are responding by openly “taunting detectives.”

South Korea ‘Blighted by Crypto-powered Drug Pollution’ – Report

Here's a summary

— Cryptonews.com (@cryptonews) February 2, 2024

Crypto-powered Narcotics ‘Playgrounds’ on Telegram

Cryptonews.com has seen scores of Telegram channels that appear to openly advertise “nationwide” drug deliveries for methamphetamine (crystal meth), ecstasy, and other drugs.

And Cryptonews.com has also seen several dozen X (Twitter) Korean-language accounts that direct social media users to these Telegram channels.

All operators seemingly post with impunity, including pictures of bags of drugs and Telegram handles in their posts.

In each case, Cryptonews.com was able to find these channels and accounts with ease by searching for commonly used Korean argot terms for methamphetamine and other narcotics.

The media outlet claimed that Telegram had effectively turned into an online “department store” for young drug buyers.

It also noted that in a post on one popular channel, a drug distribution gang “taunted” police officers by writing:

“Dear detectives, If you want to be promoted faster than your colleagues, please contact us and we will help you find [people to arrest].”

The poster mocked detectives, jokingly saying they could provide police officers with “wholesale” prices.

Crypto-paying Drug Dealers ‘Hiring Staff’

The media outlet added that Telegram channels had become de facto job agencies for young people, advertising crypto-paying “posts” such as “dead-drop delivery person.”

Dealers typically use “dead-drop” techniques to deliver narcotics. They leave bags of drugs in public places like apartment stairwells, fire hydrants, and flower beds.

They then inform buyers about the hiding place locations when they have safely left the area.

The “recruiters” behind these “job advertisements” appear to be collecting confidential data from their “staff,” gathering social security numbers and “family certificates.”

Blockchain Monitoring Tools Helping South Korean Police?

Despite a huge rise in arrests and multiple successful police investigations into crypto-powered narcotics crime, police are privately admitting it is still “difficult to track Telegram users.”

Officers have spent millions of USD on blockchain network monitoring tools and Telegram surveillance.

This has paid dividends, with police last week announcing a major raid in Busan and the Philippines.

Officers arrested 49 people in the bust, claiming the group in question had operated 11 Telegram channels and used crypto as its payment tool.

Regardless, the majority of similar channels appear to be operational at the time of writing. The media outlet claimed that many Telegram chat rooms “seemed to have degenerated into a ‘playground’ for drug suppliers.”

More Tech Solutions to Help Police?

Investigators have turned to yet more IT solutions as they look to turn the tide of the “war.”

Late last year, the Supreme Prosecutor’s Office launched an AI-powered drug monitoring software solution that it has since provided to 18 local prosecutors’ offices.

As most narcotics arrive in the country from Southeast Asia, South Korean law enforcement agencies have also sent agents to work abroad.

South Korea has sent officers overseas to work with Thailand’s National Narcotics Bureau. Seoul also plans to dispatch agents to work with Malaysian and Indonesian drug agencies.

The central government has also hiked the Supreme Prosecutors’ Office budget, doubling its annual allocation to almost $6 million.

However, critics have pointed out that this increase “is still insufficient,” as crypto-powered narcotics-related crimes “are increasing every year.”

Just six days before its planned retail expansion, the crypto exchange https://t.co/1aQemhmjuy postponed its launch in South Korea so it can communicate further with regulators https://t.co/JL9DzJk37Y

— Bloomberg (@business) April 23, 2024

A lawyer told the media outlet that the low cost of narcotics in Southeast Asia was proving “too attractive” for many people.

Smugglers can make huge profits by selling Southeast Asia-sourced drugs in South Korea.

The lawyer concluded that “digital forensic technology” was helping police, but conceded that it still had considerable “limitations.”

The post Telegram Becoming ‘Crypto-powered Narcotics Department Store’ for South Koreans appeared first on Cryptonews.

Speaking to the media outlet NSN, the Chairman of the State Duma Committee on the Financial Market Anatoly Aksakov said lawmakers will vote on a “ban on organizing the circulation of cryptocurrencies” in the coming weeks.

Russian ‘Crypto Ban’ – What We Know

Aksakov stated that the bill will stipulate that “only digital financial assets issued in Russian jurisdictions” will be exempted from the new law.

These assets will include several Russian bank-issued blockchain-powered digital coins and the Central Bank’s digital ruble project.

The bill is unlikely to face any major opposition in the State Duma, providing it has the full support of the Central Bank and government ministries.

The bank has previously called for a China-style “total” ban on crypto, a move strongly opposed by major ministry heads.

Ministries have previously called for a more Western- and Japan/South Korean-style approach to crypto regulation, with highly regulated domestic exchanges.

Instead, the new bill looks to be a compromise.

The Central Bank has previously indicated it is ready to make some concessions for firms struggling to trade overseas due to US- and EU-led sanctions.

Miners Exempted?

Aksakov explained that the new bill “proposes a ban on the organization of circulation of [cryptoassets] in Russia.”

Exceptions, he said, will only be made for miners, mining pools, and “test projects” under the supervision of the Central Bank.

Aksakov has previously conceded that some Russian firms are already using crypto as a payment tool in international trade deals.

But the bank appears keen to draw these firms under its umbrella of influence. Governor Elvira Nabiullina has repeatedly demanded that crypto should not officially “enter the Russian economy.”

Russian crypto expert experts said lawmakers were effectively “talking about a ban on transactions involving Bitcoin (BTC) and other cryptocurrencies.” Aksakov, meanwhile, said:

“There is a need for a ban as, currently, cryptocurrencies have become a type of quasi-currency that is replacing the ruble in this country. But only the Russian ruble can be considered a legal monetary unit. And that is why we made this decision.”

Several British men have been charged under a new national security law for supporting Russia by carrying out an arson attack on a Ukraine-linked business https://t.co/jtlyuovTSP

— Bloomberg Crypto (@crypto) April 26, 2024

Alarm Bells Ringing for Russian Crypto Users?

Aksakov stopped short of announcing that the bill would force Russian banks to refuse crypto exchange-related transactions.

However, it appears that such a clause could well be included in the final bill. This would present a major issue for the millions of Russian crypto users living in the country.

The Deputy Chairman of the State Duma Committee on Information Policy Anton Gorelkin struck a slightly more optimistic note in a post on his Telegram channel.

Gorelkin claimed that the bill would not “prohibit” the “circulation of cryptocurrencies in Russia.”

Instead, the lawmaker claimed that only “the organization of circulation will be prohibited” under the new bill.

He said that the law would instead seek to crack down on illegal crypto exchanges operating outside the Central Bank’s new “experimental legal regime (EPR).”

The lawmaker claimed that “providing business with unhindered access” to the crypto sector would leave them vulnerable to “Western sanctions.”

Gorelkin noted that the ban could be subject to future “revisions,” and wrote:

“It’s a paradox, but the [proposed] ban on organizing the circulation of [cryptoassets] is quite a protectionist measure.”

It appears likely that the EPR will supervise the sale of industrial crypto miners’ coins to overseas buyers.

Rosfinmonitoring, the top Russian anti-money laundering regulator, has previously said it was “monitoring” over 25,000 domestic crypto users.

And Rosfinmonitoring also called on the government to rush the rollout of crypto regulation after the Financial Action Task Force (FATF) downgraded Russia’s compliance rating due to “insufficient regulation of virtual assets and cryptocurrencies.”

The post Russian ‘Crypto Ban’ Could Come into Force by September, Lawmakers Confirm appeared first on Cryptonews.

CryptoQuant CEO Voices Out Concerns On DOJ’s Stance on Privacy-Driven Technologies

The U.S. Department of Justice (DOJ) arrested Keonne Rodriguez and William Hill, the CEO and chief technology officer of Samourai Wallet on April 24. They each face one count of conspiracy to commit money laundering and another count of conspiracy to operate an unlicensed money-transmitting business.

Ki Young Ju expressed his concern about the arrest as he emphasized that privacy was a fundamental principle of web3.

“Privacy stands as a core value of Bitcoin. Mixing itself is not a crime,” he wrote. “Even crypto exchanges use mixing to safeguard user privacy. It’s like punishing the inventor of the knife instead of the one who uses it.”

The infamous NSA whistleblower Edward Snowden echoed similar sentiments, criticizing the arrest of the Samourai Wallet’s founder and suggesting that financial privacy should be “to make money private by default.”

The Department of "Justice" has once again criminalized the developers of an app that restores financial privacy. The way to fix this it to make money private by default. Privacy must never be "exceptional," or they will make it criminal.

— Edward Snowden (@Snowden) April 24, 2024

The DOJ’s announcement accused Rodriguez and Hill of operating a crypto mixing service that allegedly laundered over $100 million from illicit dark web markets.

Prosecutors claimed that the Samourai Wallet service had facilitated approximately $2 billion in unlawful transactions since its inception in 2015.

It was also disclosed that the duo allegedly accumulated around $4.5 million in fees from their mixing services on Samourai Wallet, which offered various features with different pool fees.

Crackdown on Crypto Mixing Services and Similar Privacy Technologies

US regulators have made a habit of targeting privacy-preserving technologies like crypto mixers.

Earlier in 2023, the DOJ charged the developers of the Tornado Cash crypto mixing service with money laundering, sanctions violations, and operating an unlicensed money transfer business.

Meanwhile, the Federal Bureau of Investigation (FBI) has cautioned Americans against utilizing unregistered cryptocurrency money-transmitting services – smart-contract-driven privacy tools.

The law enforcement body urged citizens only to use registered Cryptocurrency Money Services Businesses that comply with existing Know Your Customer (KYC) and Anti-Money Laundering (AML) laws.

The post CryptoQuant CEO Supports Crypto Mixing, Says It’s Not A Crime appeared first on Cryptonews.

John Deaton Throws Support to Coinbase in Its SEC Appeal

According to Terrett’s X post, Deaton will file a brief supporting Coinbase’s appeal sometime in the afternoon of April 26.

SCOOP: Massachusetts Senate candidate @DeatonforSenate/@JohnEDeaton1 is putting his #crypto law hat back on and will file an amicus brief in support of @Coinbase’s motion for interlocutory appeal later today.

In the brief, Deaton highlights the urgent need for legal clarity…

— Eleanor Terrett (@EleanorTerrett) April 26, 2024

The crypto exchange platform has been caught up in a tense legal battle with the SEC since the regulator sued Coinbase for violating federal securities law by operating as an unregistered crypto trading platform in June 2023.

Coinbase has attempted to push back against the SEC’s claims, most recently filing an interlocutory appeal in the United States District Court in the Southern District of New York in hopes of getting regulatory clarity over whether digital assets should be classified as securities.

While specific details of Deaton’s brief have yet to be disclosed, Terrett reports that the senate candidate criticizes the SEC’s wavering stance on whether or not digital assets are securities and the commission’s “ecosystem is the security argument.”​​

“Bitcoin is certainly distinguishable from other cryptocurrencies but claiming it’s not a security unlike other tokens because it doesn’t have an ecosystem, is just plain dumb,” Deaton states.

Elizabeth Warren, SEC Face Regulatory Criticism

The news of Deaton’s amicus curiae brief follows a recent X post by the Elizabeth Warren challenger slamming the U.S. government’s regulation-by-enforcement approach to cryptocurrencies.

On Friday, @coinbase filed a request for permission to file an interlocutory appeal to the 2nd Circuit Court of Appeals. Because Congress is inept and because @GaryGensler is a bad faith regulator pursuing a political agenda, Coinbase is hoping to achieve regulatory clarity… https://t.co/Udv2swSdjz

— John E Deaton (@JohnEDeaton1) April 15, 2024

“Because Congress is inept and because @GaryGensler is a bad faith regulator pursuing a political agenda, Coinbase is hoping to achieve regulatory clarity through the judicial system,” Deaton wrote.

The SEC has often been criticized for its heavy-handed regulatory tactics regarding crypto. Software development firm Consensys filed a lawsuit against the regulator Thursday over purportedly attempting to regulate Ethereum as a security.

Conversely, Warren has continued to advocate for stringent digital asset regulation, including the passage of the Digital Asset Anti-Money Laundering Act (DAAMLA). This act would heavily expand know-your-customer (KYC) and anti-money laundering (AML) laws to several critical actors in the crypto space, including miners, validators, and more.

“Name your bad guy and crypto is the way they can move money around,” Warren said in a recent senate committee hearing earlier this month. 

Deaton’s latest legal boost to Coinbase suggests increasing tension over the U.S. government’s treatment of the digital asset ecosystem. However, it’s unclear what, if any, effect the current legal challenges of the SEC will have on its regulatory stance toward digital assets.

The post Elizabeth Warren-Challenger John Deaton to File Brief in Support of Coinbase Appeal in SEC Case Today: Fox appeared first on Cryptonews.

In his post, Dashjr highlighted the contrasting nature of Ordinal Inscriptions and the Runes protocol in their interactions with the network.

Ordinals exploits vulnerabilities.

Runes merely exploit design flaws.

— Luke Dashjr (@LukeDashjr) April 26, 2024

He explained that while Ordinals exploit vulnerabilities within Bitcoin Core, the Runes protocol operates within the existing framework of the network’s design flaws. 

Runes Draw Criticism After Causing Congestion

Ordinals allow for the inscription of data onto satoshis (the smallest units of Bitcoin), creating a concept similar to non-fungible tokens (NFTs).

Their introduction last year marked Bitcoin’s entry into the NFT space and attracted considerable interest within the crypto community.

On the other hand, Runes are fungible tokens introduced on the day Bitcoin completed its fourth halving. 

However, following their launch, these tokens caused major network congestion, leading to a surge in transaction fees. 

Dashjr has long criticized both asset types, arguing that they deviate from Bitcoin’s core principles and contribute to blockchain spam.

In fact, he previously referred to Ordinals as a bug and spearheaded initiatives to address them through bug fixes.

In response to his opposition to Runes, Dashjr suggested methods for filtering out transactions related to the protocol. 

He recommended adjusting the “datacarriersize” setting in the bitcoin.conf file to zero, which would effectively block Runes’ spam. However, early indications suggest that miners are not following this advice. 

Ocean Mining, a decentralized mining pool where Dashjr serves as the CTO, recently mined its first post-halving block, with over 75% of its transactions originating from the Runes protocol.

We don't dictate what blocks our miners mine.@OCEAN_mining's mission is in fact the exact opposite: to empower miners to be the ones making these decisions.
Toward that end, we do offer a data-free template for miners who wish to exclude Runes, and I personally encourage miners…

— Luke Dashjr (@LukeDashjr) April 26, 2024

“That being said, while it’s unfortunate that many scammy Runes got mined, they did meet the policies OCEAN has recommended from the start,” he wrote. “While Ordinals are a 9-vector attack that exploits vulnerabilities in Bitcoin Core, Runes are ‘only’ a 5-vector attack that actually technically follows the ‘rules.'”

Bitcoin Transaction Fees Plummet After Halving

Bitcoin transaction fees have experienced a substantial drop just one day after reaching an all-time high average of $128 on April 20, coinciding with the fourth Bitcoin halving. 

As of April 21, the average fees for medium-priority transactions on the Bitcoin network ranged from $8 to $10.

The preceding day had witnessed a surge in total fees, with Bitcoin recording $78.3 million in fees, surpassing Ethereum by over 24 times.

Notably, the Bitcoin halving block at block height 840,000 included a record-breaking 37.7 bitcoins (equivalent to $2.4 million) in transaction fees paid to Bitcoin miner ViaBTC. This block included 3,050 transactions, resulting in an average fee of nearly $800 per user.

The demand for block 840,000 was largely driven by enthusiasts of meme coins and NFTs competing to inscribe and etch rare satoshis using the Runes protocol.

The post Bitcoin Core Developer Claims Runes Protocol Exploits Bitcoin Blockchain’s Design Flaw appeared first on Cryptonews.

This outflow trend, the first of its kind since its introduction in January, had a ripple effect beyond Fidelity Bitcoin ETF. It impacted other prominent funds in the cryptocurrency market, painting a broader picture of the market’s current state.

On the same day, notable names in the cryptocurrency market, such as ARK 21Shares’ ARKB, Valkyrie’s BRRR, and Bitwise’s BITB, recorded outflows of $31.3 million, $20.2 million, and $6 million, respectively. 

Fidelity Outflow Came As Surprise

According to SoSoValue data, the Fidelity Bitcoin ETF outflow on Thursday amounted to $22.61 million. This departure from its typical performance showed a shifting sentiment among investors in the Bitcoin market. 

Franklin Templeton’s EZBC emerged as a top performer among the affected funds, attracting a net inflow of $1.87 million. However, Grayscale’s GBTC counterbalanced this positive momentum, experiencing a substantial drainage of $139 million.

Daily Flows: @Grayscale ‘s $GBTC and @BlackRock ‘s $IBIT pic.twitter.com/Uik7HRSuUH

— HODL15Capital (@HODL15Capital) April 26, 2024

Analysts attribute the lack of significant fund inflows to the post-Bitcoin halving environment. Hong Song-uk, an analyst at NH Investment and Securities, highlights the need for follow-up events focusing attention on Bitcoin in the near term.

“There are no follow-up events that focus attention on Bitcoin in the near term,” Hong said.

At the time of publication, Coinglass data revealed that approximately $58.2 million of Bitcoin was liquidated in the past 24 hours, with long positions accounting for $35 million.

On Wednesday, the Fidelity Bitcoin ETF contributed $5.4 million to the total inflow of $9.8 million for the day. BlackRock’s IBIT fund continued its trend of zero inflows on Thursday, mirroring its performance from the previous day. Other funds that reported no inflows on Thursday include Invesco’s BTCO, VanEck’s HODL, WisdomTree’s BTCW, and Hashdex’s DEFI.

Bitcoin Outflow Trends Still Going Up

In a recent report from SoSoValue from April 17, Bitcoin also saw significant outflows in the Bitcoin exchange-traded funds (ETFs) market, notably highlighted by Grayscale’s Bitcoin Trust (GBTC) witnessing a net outflow of $79.38 million.

This contributes to GBTC’s historical net outflow of $16.46 billion. Conversely, the BlackRock ETF IBIT saw a net inflow of approximately $25.78 million, reflecting a divergent trend in investor sentiment.

Further insights highlight the magnitude of outflows from GBTC, reaching as high as $643 million, while other ETF products witnessed modest inflows.

On the other hand, while BlackRock’s 71-day streak of continuous inflows ends, signaling a potential shift in the Bitcoin market, there’s notable turbulence in the exchange-traded funds (ETFs) market.

Preliminary data from Farside Investors reveals a significant decline in BlackRock’s IBIT popularity. For the first time since its launch, the fund failed to attract new investments, contrasting with the modest inflows seen in Fidelity’s FBTC and the ARK 21Shares Bitcoin ETF.

Concurrently, Grayscale’s GBTC faced substantial withdrawals, culminating in a net outflow of $120.6 million—the largest since April 17.

Despite the initial enthusiasm and heavy investments, the sentiment towards Bitcoin ETFs has cooled off this month, dampening the previous momentum in the Bitcoin market.

As Hong Kong prepares to launch Bitcoin and Ether ETFs by the end of April, aiming to challenge the United States’ dominance in the digital asset space, regulatory hurdles and competition with established U.S. financial giants pose significant challenges. 

Moreover, while Fidelity’s Bitcoin ETF recently secured a record $40 million investment, concerns persist over low public participation in Bitcoin ETFs, highlighting the growing institutional interest in Bitcoin alongside the challenges hindering broader ETF adoption.

The post Fidelity Bitcoin ETF Records First Daily Net Outflows Since January Listing appeared first on Cryptonews.